Emerging economies have little to be cheerful about these days, and while it wouldn’t do to put all the blame on China, what’s going on there makes for some grim economic weather.
China has embarked on an irreversible transition from rapid, investment-led growth to slower, more balanced growth; a transition that is utterly necessary in order for China to avoid a financial crisis of its own.
But the result is that China now just needs less of the stuff – commodities and intermediate manufacturing inputs – that it had previously been happy to buy from other developing countries. China’s sunshine has given way to cloud. Read more
The retirement of Gao Xiqing as president of the China Investment Corporation, China’s sovereign wealth fund, has fund managers wondering what the change of leadership will mean for asset allocation and the fund’s use of external managers.
Gao, one of the CIC’s founders, and instrumental in many of its most well-known (and sometimes ill-fated) deals, is to be replaced by Li Keping, who is the chief investment officer. This is the second change in top leadership positions at CIC in less than a year, with Ding Xuedong becoming chairman of CIC in July 2013. Read more
The great potash saga rumbles on. With Uralkali’s chief executive in a Belarusian KGB cell, the global potash market paralysed by uncertainty and Belarus’s state coffers in jeopardy, China has jumped into the mix with a surprise decision by CIC, a Chinese sovereign wealth fund, to take a 12.5 per cent stake in the Russian miner.
On the face of it, the deal should bring the saga closer to conclusion. But don’t expect the paralysis to be lifted any time soon. Read more
Overseas funds have rushed to Japan this year to buy the bull market touched off by prime minister Shinzo Abe. And it seems there has been one big seller quite happy to let them: Beijing.
For the past six years companies from Toyota Motor to SoftBank have noticed a custodial account called OD05 cropping up on their shareholder registers. Sometimes identified as “SSBT OD05 Omnibus China”, and sometimes going by “OD05 Omnibus China Treaty”, it is has been linked in media reports to China Investment Corporation, the giant sovereign wealth fund. Read more
There is a new man at the top of the China Investment Corporation (CIC), China’s sovereign wealth fund, prompting debate about whether the change in personnel will also mean a change in approach.
Lou Jiwei (pictured), who is still listed in CIC’s website as chairman and chief executive officer, became China’s finance minister in March. His successor has not been formally named but it has been locally reported that he is Tu Guangshao, the executive vice mayor of Shanghai. Read more
The investment by China Investment Corporation in Friday’s flotation of the Moscow Exchange carries several messages for observers seeking to understand the investment approach of China’s sovereign wealth fund. Read more
As markets wait once again for European leaders to bring the eurozone crisis back from the brink, there is one man who is more than happy to lend some advice: Jin Liqun.
What he thinks about Europe carries weight because the institution he chairs, China Investment Corporation, is one of the world’s most important sovereign wealth funds. Read more
By Stefan Wagstyl and Julia Grindell
On a crucial day for the eurozone crisis, a top Chinese official visiting Europe hasn’t missed an opportunity to give EU leaders a stern lecture.
Speaking in London on Thursday, Jin Liqun, chairman of CIC, China’s sovereign wealth fund, indicated that China couldn’t ride to the rescue by buying high-risk bonds unless there was a clear resolution plan. Read more